Femi Otedola Becomes The Largest Shareholder in FBN Holdings

Femi Otedola, a Nigerian billionaire, has increased his stake in First Bank of Nigeria Holdings Plc (FBN Holdings), the parent company of Nigeria’s oldest commercial bank, First Bank of Nigeria Limited, by $12.5 million. In Q1 2024, he acquired further shares valued nearly $7.7 million.

On June 20, Otedola, chairman of FBN Holdings and Geregu Power Plc, purchased 863,180,810 shares in FBN Holdings, as per a share trading statement on the Nigerian Exchange. The transactions were carried out on the Nigerian Exchange floor on June 20 by Calvados Global Services Limited, one of Otedola’s firms.

Forbes reports that Femi Otedola, worth $1.4 billion, bought 316,506,776 shares at an average price of N21.91 ($0.0145) and 546,674,034 shares at an average price of N21.97 ($0.0146) a share.

This purchase, at N18.95 billion ($12.56 million), increased his holding from 7.01 percent (2,517,282,140 shares) to 9.42 percent (3,380,462,950 shares), surpassing Obafoluke Otudeko, who owns 8.67 percent (3,110,400,619 shares) through Barbican Capital Limited.

In October 2021, Otedola acquired a 5.07 percent stake, or 1,818,551,625 shares, in FBN Holdings for N22.27 billion ($54.2 million at the time). Subsequent purchases have gradually raised his stakes to their current level, reflecting his strategic commitment to the banking group.

Otedola’s influence has grown beyond ownership; his nomination as chairman of FBN Holdings has strengthened his grip on the company’s destiny. Under his guidance, FBN Holdings announced a staggering 127 percent profit rise in the fiscal year 2023, exceeding $210 million. The group’s earnings was N310.01 billion ($219.25 million), up from N136.31 billion ($96.4 million) the previous year.

In Q1 2024, FBN Holdings reported a net profit of N208.2 billion ($149.7 million), up 315.8 percent from N50.1 billion ($36 million) in the same time the previous year. This increase was driven by an increase in interest income to N454.98 billion ($326.5 million) from N179.6 billion ($128.9 million) and a rise in fee and commission income from N42.87 billion ($30.8 million) to N63.6 billion ($45.7 million). Gains from financial instruments also contributed, totaling N288.94 billion ($207.73 million) in the first quarter of 2024.

The group’s total assets increased to N21.58 trillion ($15.51 billion) on March 31, 2024, from N16.94 trillion ($12.17 billion) at the end of 2023. Retained earnings increased from N588.9 billion ($423.37 million) to N794.4 billion ($571.1 million), demonstrating FBN Holdings’ strong financial position under Otedola’s leadership.

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